Despite government attempts to enforce a code for prompt payment and plans to appoint a commissioner to oversee business rows, the proportion of UK SMEs suffering from the chronic issue of late payments is rising.
According to recent data the number of UK SMEs suffering from late payments has jumped by 9% from Quarter 2 2014 to Quarter 2 2015, with over half (51%) of businesses waiting more than 30 days for payment.
On a regional level, SMEs in the West Midlands and Yorkshire and Humberside are currently suffering the most from the plague of late payments. The proportion of SMEs suffering from late payments doubled in the North East from Q2 2014 to Q2 2015.
According to recent data the number of UK SMEs suffering from late payments has jumped by 9% from Quarter 2 2014 to Quarter 2 2015, with over half (51%) of businesses waiting more than 30 days for payment.
On a regional level, SMEs in the West Midlands and Yorkshire and Humberside are currently suffering the most from the plague of late payments. The proportion of SMEs suffering from late payments doubled in the North East from Q2 2014 to Q2 2015.
It remains to be seen whether naming and shaming will improve payment behavior.
SMEs in the construction sector suffer the most from late payments, with 55% of SMEs having to wait over 30 days to be paid, up by 11 percentage points since Q2 2014. Construction is closely followed by manufacturing and wholesale as the top sectors facing late payments.
Many SMES are faced with a tough choice, either accept late and delayed payments or lose the business to a competitor who is prepared to wait for their money.
Next year there will be new legislation naming and shaming businesses with the worst payment records. It remains to be seen whether naming and shaming will improve payment behavior.
Many SMES are faced with a tough choice, either accept late and delayed payments or lose the business to a competitor who is prepared to wait for their money.
Next year there will be new legislation naming and shaming businesses with the worst payment records. It remains to be seen whether naming and shaming will improve payment behavior.
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